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Brentwood staff report steep insurance premium increases; no committee action required

Brentwood Ways & Means Committee · July 9, 2024
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

City staff told the Ways & Means Committee that workers' compensation and liability insurance renewals effective July 1 show substantial premium increases driven by wage growth, experience modifiers and broader market trends; staff recommended injury-prevention measures and said no committee action is required now.

City staff told the Brentwood Ways & Means Committee on July 9 that insurance premiums for workers' compensation and liability programs rose notably at renewal and that the committee need not act immediately.

On workers' compensation (effective July 1) staff said premiums rose roughly 35% from the prior year. Staff attributed increases to higher salary bases, a higher experience-modification factor (reflecting injury frequency over a three-year window) and broader market pressure. Tangela, the human-resources manager and head of the reconstituted safety committee, described department-level safety and training efforts intended to reduce injuries and lower future premiums.

"Analyze injuries, and try to identify ways that we can better inform our employees... so that they don't get injured," Tangela said, describing safety-committee activities and employee education as the primary mitigation strategy staff proposed.

Staff also reported that liability/general auto and police insurance renewed July 1 with modest rate increases. SLAIT — the joint insurance pool referenced in the presentation — is not issuing a special assessment but has set rates higher for members so costs are spread over time, staff said.

Committee members asked clarifying questions but took no action; staff said they will continue monitoring claims and premium drivers as part of routine budget work and safety initiatives.

The insurance updates will feed into broader budget conversations in August, when the committee will review revenues and benefits and continue the compensation discussion.